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Strategies & Market Trends : Bosco & Crossy's stock picks,talk area

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To: straight life who wrote (36899)1/26/2013 5:09:03 AM
From: Crossy3 Recommendations  Read Replies (1) of 37387
re: preferred CEFs (Close End Funds) and in particular Nyse: FFC

yield seeking investors should start to seriously look at dropping those preferred CEFs with very high premium over NAV as the environment of finally rising rates on the long-end of the govt' bond market, coupled with the many ongoing redemptions (at par !), a trend that started 2012, should compress the yield potential of the group.

I saw some PIMCO managed leveraged CEFs are trading at real big premiums. Additionally, Guggenheim fund NYSE :FFC (flaherty & Crumrine) is already showing a NAV premium in excess of 5%. All in all, a rebalance could bring some nice improvement to yield-optimization.

IMHO interesting look some "mixed" CEFs like Cohen and Steers managed Nyse:RNP (REIT, preferreds) that are still trading below NAV, as well as convertible CEFs - which have a nice call option on market embeded (AVK, AGC, LCM) and finally the REIT segment looks better and better to me (RQI, NRO, RSO)

best to you,
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